Enhancing Your Ford Portfolio
Shareholders of Ford Motor Co. aiming to amplify their returns beyond the stock’s 5% yearly dividend yield have an intriguing option at their disposal. By engaging in the sale of the December 2026 covered call at the $16.82 strike and procuring the premium based on the 95 cents bid, investors can elevate their earnings. This strategy potentially adds a remarkable 3.1% rate of return (annualized) against the current stock price, creating a total of 8.1% annualized rate if the stock is not called away. Venturing into this terrain involves a calculated risk; observing Ford’s journey, investors would have to witness a 39.9% ascent in F shares from current levels to encounter any drawbacks. Yet, in the event the stock is called away, shareholders would have gathered an impressive 47.8% return from the trading level, apart from any previously accumulated dividends.
In reality, dividends can be as capricious as the weather, closely mirroring a company’s financial fortunes. By delving into Ford Motor Co.’s dividend history chart below, stakeholders can discern whether the recent dividend trend is sustainable. This analysis further aids in determining whether a 5% annualized dividend yield is a realistic expectation moving forward.
Beneath lies a chart spotlighting F’s trailing twelve-month trading voyage, with the $16.82 strike boldly highlighted in red:
By amalgamating the insights gleaned from the chart above with the stock’s historical volatility, investors can gauge the potential payoff against the risk of capping the upside beyond $16.82. Exploring the trailing twelve-month volatility for Ford Motor Co. – considering the last 251 trading day closing values alongside today’s price of $12.01 – stands at 32%. For more call options contract suggestions across various expirations, peruse the F Stock Options page on StockOptionsChannel.com.
Market Trends and Insights
During mid-afternoon trading on Thursday, the put volume among S&P 500 components tallied 887,317 contracts, with call volume hitting 1.62 million. This manifested a put:call ratio of 0.55 for the day. In comparison to the long-term median put:call ratio of .65, the soaring call volume in options trading suggests a strong affinity towards calls among buyers today. Dive deeper to unravel the 15 call and put options that traders are buzzing about via this insightful resource.
Peruse through the Top YieldBoost Calls of the S&P 500 for further exploration.
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